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It’s never too late to start building your future, so it is important to get the right banking partner. In this article, we’ll explore some of the things you should consider before starting a bank account.

We distinguish four types of new banks.

Neo banks for saving account and more

Neo banks usually do not have a banking license, but partner with banks to offer services. Neobanksrequire customers to have an existing They offer a better user experience. User experience is key to facilitate account opening. A financial institution can apply to get a banking license in the country, and then offer different types of accounts. These banks usually have a lot more features than neobanks: they provide saving accounts, checking account services, and loans. You might know – WeBank by Tencent, Yolt, and Moven are examples of neo banks.

The new banks with the whole old bank service from saving money, savings accounts to trading

New banks have full banking licenses offering the same services as traditional banks. You will find include Monzo, N26, MyBank, Starling Bank, and Revolut. They are struggling to get independence from legacy frameworks and usually will partner with local tier-one banks when they need to open a new market. For example Revolut with Credit Suisse in Switzerland. Those banks will have to manage expectations of financial conduct authority and prudential regulation authority.

The “non bank account” Non-Banks

Those banks have no connections to traditional banking licenses. Instead, they will provide financial services by other means. This unique model allows the company to operate independently of existing banks.

They usually have strong IT to serve direct debits technology, they don’t offer independent advice or financial products.

The Beta banks – with savings account and more Beta Banks

Joint ventures and subsidiary banks that offer financial services through the parent’s license. Beta banks are often set up as a way to enter new markets. For examples AiBank (China’sCITIC Bank Corp and Baidu) and Simple (Bancorp and BBVA). Those banks have their own ecosystem connecting with their API new business models, new customer experience, and offer connections to third-party financial institutions.